Roth 401(k) vs. Traditional 401(k)

From The Upfront Blog
January 17, 2013 - 3:20pm

The New Year’s Day tax deal (also known as the fiscal cliff legislation) made headlines in the retirement world because it included new rules to make it easier for employees to convert existing traditional 401(k) plans to Roth 401(k) plans. Over the past six years, an increasing number of companies have begun to roll out Roth 401(k) options for their employees. Many people now have the simple question: “When does it make sense to use a Roth 401(k)?” Before we answer that question, you should understand the key difference between a Roth 401(k) and a traditional 401(k). With a Roth, you’ll pay taxes on the money you invest now, but no taxes when you withdraw the money at retirement. In [...]


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